Shock rise for high street sales

Thursday 18th September 2008, 10:26AM BST.

Unexpected rise for high street sales Sales on the high street have picked up over August by 1.2 per cent, according to figures from the Office for National Statistics (ONS).

Clothing and footwear sales drove overall sales higher, the ONS said in its report.

The rise was unexpected, with most analysts predicting further deterioration in the retail sector as consumer confidence continues to fall.

Unemployment is at a nine-year high and inflation is up to 4.7 per cent, squeezing household budgets further.

Sales for clothing and footwear stores rose by 4.1 per cent, while sales volume in predominantly food stores fell by 0.2 per cent. Sales volume for predominantly non-food stores rose by 2.1 per cent, the statistics office said.

The average weekly value of retail sales in August is estimated at £5.1 billion, 3.9 per cent higher than August 2007.

Capital Economics analyst, Jonathan Loynes, said the figures were “puzzlingly strong” compared to the evidence coming from retail surveys.

He added: “As such, we suspect that the monetary policy committee (MPC) will treat them with a pinch of salt when considering the overall strength of the household sector.”

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